How Much Should I Pay for an Estate Plan?

[km4hr]

I contacted an estate planning attorney about setting up a plan. They had me complete a form showing the value and location of all my assets and liabilities, including a monthly statement for each. I don't have any liabilities and all my assets are in investment accounts, other than my house. Should be very easy to liquidate and distribute.

I wondered why they needed to know the value of everything. I assumed all they would need to know was what percentage of my assets I wanted each beneficiary to get.

I think I have discovered why they want to know the values. It looks like they base their fee on the size of the estate. But I think that's crazy. Why would it take any more of their time to create documents for a 5M dollar estate than for a 1M dollar estate if they both are invested in the same funds at Vanguard, for example?

For my plan they want over $4k. Isn't that a little pricey for an uncomplicated trust plan? They didn't even ask anything about the number and type of beneficiaries.

 

[Blue Collar Guy]

I contacted an estate planning attorney about setting up a plan. They had me complete a form showing the value and location of all my assets and liabilities, including a monthly statement for each. I don't have any liabilities and all my assets are in investment accounts, other than my house. Should be very easy to liquidate and distribute.

I wondered why they needed to know the value of everything. I assumed all they would need to know was what percentage of my assets I wanted each beneficiary to get.

I think I have discovered why they want to know the values. It looks like they base their fee on the size of the estate. But I think that's crazy. Why would it take any more of their time to create documents for a 5M dollar estate than for a 1M dollar estate if they both are invested in the same funds at Vanguard, for example?

For my plan they want over $4k. Isn't that a little pricey for an uncomplicated trust plan? They didn't even ask anything about the number and type of beneficiaries.

lol,the more you have the more they want, they must have learned this from my old financial adviser.

 

[Fedup]

I paid almost $5k back in 2011. it's not a one man business.

 

[phil1ben]

They need to know the actual values because the Federal Gift and Estate tax laws and applicable State inheritance laws are based on the size of the estate in dollars. In other words, certain trusts and/or will provisions apply and are needed (and taxes are incurred) when the value of the estate exceeds $_____ dollars. Its somewhat like going to a doctor and asking for a remedy without telling him/her the extent of the ailment or the symptoms.

I disclosed the full extent of my assets and paid in excess of $5,000.00 to the attorney I chose to do my estate planning/will.

The open issue is what Trump and Congress may do or not do to the estate planning laws. Of course you still need to deal with State laws one way or the other. But Trump is in favor of repealing the Federal Estate tax. You may be under the threshold for the current Federal Estate Tax now which I believe is 5.49 million for an individual with couples able to currently shield double that with a proper plan. However, you could be severely effected by much lower State inheritance laws which in some states apply to relatively small estates.

My advice to you would be to have the attorney you are comfortable with complete your estate planning/will under current laws but negotiate in advance that if the estate tax is repealed or substantially modified (say within 2 years) he/she will revise your estate plan/will for an agreed upon smaller sum. After disclosing your assets the attorney should be able to provide you with a fixed fee (or a very reliable estimate) to complete your estate plan/will.

 

[exnavynuke]

My will, trust, living will, financial POA, and medical POA combined cost me $1k around 7 years ago. I didn't have any estate tax issues to deal with (less than the current exemption amount).

 

[athena53]

DH and I paid about $3K for a revocable trust, 2 wills and healthcare Powers of Attorney about 3 years ago in a LCOL area. I know I've got to get the trust updated now that he's gone although the trust is in my name only and covered the contingency that DH died first. I'd rather spend the $$ on plane tickets than lawyers!

I'm still not enamored of the whole trust idea but attorneys sure seem to like it-it's a great revenue source. Mine is revocable so there are no tax advantages (my brother, a CPA who specializes in taxation, says to the IRS the trust doesn't exist). The main reason I'm glad it's there is that DS, my only child, isn't much interested in managing money and my brother the CPA is a successor trustee so he can help DS manage it. I've talked with DS and DDIL- they're devout Christians and I want them to use any money I leave behind for their kids' education and their own retirement before they start giving large chunks away. My brother is also a devout Christian who most likely tithes but also owns 3 houses, has a Tesla on order and vacations in Cabo St. Lucas. I'm hoping he'll be able o give DS some perspective.

 

[UtahSkier]

I paid $50 or so for quicken will maker in 2005. All our assets are inside a trust and DW and I are trustees.

 

[Car-Guy]

My lawyer (at the time) did mine for about 1k, but that was about 25 years ago. Try to be sure he/she has all the info he/she needs to get it right on the first draft. Lawyers love to recycle things, including bills.

 

[iloveyoga]

I think we paid about $400. Ours was similar, most assets are in retirement accounts and should be easy to distribute.

 

[jetpack]

In the planning process now. With the value expected to be above $5M, it looks like things will be more complicated.

 

[nwsteve]

We paid 3K in a relatively LCOL area for a revocable trust, wills, and health powers of attorney.
Be sure you know what all is included in your "estate plan" regardless the price.
One of the best reason for a RLT (revocable living trust) is its ability to provide for seamless management of your assets by your designated trustees in case of any temporary or permanent impairment. We have several rentals and oversight of those items require a bit more attention than the portfolio per se. Avoids all the hassle of getting a court appointed trustee etc in case of impairment. Of course, there is also the well promoted, probate advantages.
Athena, you can also use your RLT to provide instructions to the Successor Trustee to pay tuitions for your nieces/nephews with whatever caveats you want to add.
Nwsteve

 

[km4hr]

Legal Zoom has a $300 package deal to create a revocable living trust. Could that (or something similar from another company) be a serious way to go? LZ seems to be a legit outfit in most respects.

 

[Fedup]

I wouldn't do it yourself, especially if the asset is more than $5 Million. It's a small potato compares to the asset.

 

[scrabbler1]

My will, trust, living will, financial POA, and medical POA combined cost me $1k around 7 years ago. I didn't have any estate tax issues to deal with (less than the current exemption amount).

Similar here. I paid $1,500 for those documents 9 years ago, in 2008.

 

[Jerry1]

I paid $50 or so for quicken will maker in 2005. All our assets are inside a trust and DW and I are trustees.

Legal Zoom has a $300 package deal to create a revocable living trust. Could that (or something similar from another company) be a serious way to go? LZ seems to be a legit outfit in most respects.

I would think that even if you use an attorney (which I would) either of these two items (software or LZ) would have the potential to save you a decent amount of money at the attorney (at least what they cost). They would force you to be prepared and do so on your own time. The more prepared you are going in the less time of the attorney you would use.

 

[Corporateburnout]

We paid 4k back in 2008 for a comprehensive plan from a reputable law firm that provides services in estate planning, elder law and numerous other services. We've since had two reviews free of charge which is a good way to stay current on changes in federal and state estate laws.

 

[Scuba]

We paid about $700 around 8 years ago. This included the RLT, healthcare POA's and other POA's for conducting business. Our assets are in investment accounts and real estate, and we have no children. This thread has been helpful as it makes me think we should get it updated given legal and asset valuation changes since we had it done.

 

[Nature Lover]

I paid ~$2,500 in a HCOL area in 2014 for a revocable trust, will, health directive and powers of attorney (general and health care POAs).

Documents provide for asset management and health care decision making in the event of temporary or permanent impairment, and the efficient (streamlined and probate free) distribution of estate on death.

Our family has found our estate planning efforts well worth the expense following one family member's effective incapacity, and several who have passed in recent years.

Like insurance, you don't fully understand what it's worth until you need it; but the decision is yours on whether to self-insure or pay someone to help mitigate the impacts of a loss.

 

[Lake161]

I got my trust, will, health care directive, and POA done while I was still working, using a legal plan from Hyatt that my company offered. The plan cost me $3.50 a month, and I could drop it the following year once I had my documents. My only additional cost was postage and the notary fee. In my HCOL area, the package runs about $2900.

 

[Fedup]

We paid 4k back in 2008 for a comprehensive plan from a reputable law firm that provides services in estate planning, elder law and numerous other services. We've since had two reviews free of charge which is a good way to stay current on changes in federal and state estate laws.

They charged me $800 every two years to review. I only terminated the maintenance part this year. If I wait long enough, I can redo my trust if I need to, I mean the maintenance fee can pay for a new trust. I'm think it might be revised if we have new estate law.

 

[Happyras]

In 1999 we paid too much (>2k) to a well known attorney for a single will, no real estate plan. We later interviewed an FA from Creative Planning who provided us some better organization on estate planning, but elected not to go with them due to cost of AUM. Their estate plan costs seemed reasonable. Their advisory services were OK, just did not want to pay 80 bp. It took us two years to finally complete our plan.

This year we completed documents including our revocable LT, pour over wills, QTIP trusts with Clayton provisions to capture portablility of state estate tax exemption and Fed if necessary, irrevocable IRA trusts and all 3 health care/ directives, powers of attorney, and final disposition instructions.

I had tried to get an attorney to do this, but none I interviewed completely understood how to deal with PS corp and Sub S language required to conform to state law to allow a non-licensed trustee to act (go figure). I did a lot of reading. I found out that most lawyers use software with built in questionnaires tailored to specific state laws. I am really considering purchasing the one I tried and would recommend it highly, but it is not appropriate on this forum to promote. I told one of my lawyer friends, it was over his head as a patent law expert. He told me his former firm provided estate planning for life for free so he would not subscribe personally. I got the drift that it was just software anyway.

Other than hand holding, attorneys basically get the questions filled out and turn it over to a legal assistant to generate the doc package. I was quoted fees based on estate value, and they were fairly high for marginally little work. 3k to 5K plus adders for calls and letters. A QTIP or other tax advantage strategy would be more $$$.

The software generates the billing, the letters of instruction for funding the trusts, explanations of terms, and all the deeds ready to file with the county for re-titling real estate, and letters for each account to change owners to the RLT. I now know too much about what really goes on with estate plans that attorneys claim they create themselves. There are 3 major software packages used by such firms, I was lucky to find one that had all my questions covered, and generated word docs. It costs no more than hiring an attorney, but gives you the power to customize as needed or create for others to review with their own attorney.

BTW Nolosoft Will Maker and Trust maker are way too simplified for anyone to get a proper trust or estate plan. They have no provision for community property language, nor recognize any tax strategies. The software I used not only quoted state RCW language, but also stated clearly the intent of such usage.

 

[Happyras]

I got my trust, will, health care directive, and POA done while I was still working, using a legal plan from Hyatt that my company offered. The plan cost me $3.50 a month, and I could drop it the following year once I had my documents. My only additional cost was postage and the notary fee. In my HCOL area, the package runs about $2900.

Our DD works for Hyatt, I will have to ask her about this for her benefit. Our notary was done by my DE (dear ex) for free, but we took some earlier docs to our credit union which does not charge either.

Most lawyers charge $250 to $300 per deed to file the Quit Claim Deeds transferring title to the RLT, and more if you want letters for each investment or bank account. Yet another plus for having a proper software package in your own control. You can always choose to have your docs reviewed on an hourly basis by a local attorney for less than $300 typically.

 

[Hyper]

DW worked many yrs for a law firm in the past. The gals do the majority of the work on forms such as these. One of the lawyers would look it over at the end. Actually simple to understand now but laws can change. A cpl of the partners were honest and charged an honest amount. A cpl if they knew the client were wealthy would soak them! And a few in the middle of those. Ours was free and just keeps getting simpler as we keep unloading things. Very easy to modify as things change. I'd not pay an attorney to set it up unless we were very wealthy.

 

[athena53]

DW worked many yrs for a law firm in the past. The gals do the majority of the work on forms such as these.

I suspected this. I have to admit, though, that our attorney did a good job of thoroughly walking through possible pitfalls. Trust was in my name, with DB as trustee if I outlived DH. Did DB and DH get along? DS had the right to become a co-trustee (he's smart and responsible, but has no interest in managing money, and DB is a CPA). Did DS and DB get along? Would they take care of DH? He had a few colorful stories about times things had gone wrong (names removed, of course). It made me appreciate my extended family- I knew they'd take care of DH if needed, and I didn't have anyone lurking in the wings salivating at the thought of getting my money.

Also- the $3K I mentioned earlier included all paperwork, including the deed transferring the house to the trust. I did the brokerage account transfers myself.

 

[kcowan]

$250 5 years ago. POAs, no estate taxes, 2 heirs.